October 1 will see a 5 percent higher ceiling on heat prices come into effect in the capital.
Under the change, cleared by the Competition Authority, a megawatt-hour will cost 68.82 euros not including VAT, the Tallinna Küte utility said. That will be the fourth consecutive month of increases. The price was 63.82 euros in July.
The utility said that the price of heat sold by Eesti Energia's Iru power plant had risen by 15 percent. Tallinna Küte generates about half of its thermal energy in its own units from natural gas and buys the rest from Iru, Tallinn Power Plant and smaller producers.
Close to 30 percent of the heat is generated from alternative fuels - wood chips and peat - at Tallinn Power Plant while the rest is from natural gas.